AARP poll shows support for state-administered retirement plans

David Levinsky @davidlevinsky

Monday

Sep 14, 2015 at 12:01 AMSep 14, 2015 at 4:15 AM

TRENTON — Most New Jersey voters are anxious about their retirement savings, and a majority of them support the idea of the state administering retirement accounts for private workers who don't have them through their jobs, according to a new AARP poll.

The poll results were released by AARP last week as part of the group's efforts to lobby for the passage of legislation to create retirement accounts for the nearly 1.8 million private sector workers in New Jersey whose jobs don't offer a pension or 401(k).

The bill, known as the "New Jersey Secure Choice Savings Program," was introduced earlier this year by Senate President Stephen Sweeney, D-3rd of West Deptford, and Assembly Speaker Vincent Prieto, D-32nd of Secaucus.

Under the legislation, employees at companies with more than 25 workers that have not been offered a qualified retirement plan would automatically be enrolled in the state program, which would deduct a percentage of their paychecks to invest in individual retirement accounts.

Companies with fewer than 25 employees would be eligible to participate in the program but would not be required to join.

Employees would be automatically enrolled at a 3 percent paycheck deduction, but would be able to opt out or choose a different contribution amount.

The Assembly Labor Committee voted 6-2 in June to release the bill for consideration by the full Assembly, but the Senate version is still pending before the upper chamber's Labor Committee.

Sweeney said he expects the committee will take up the measure later this month, when the Senate is expected to reconvene, or in early October.

He cited the AARP report, which found that 86 percent of New Jersey voters wished they had more money saved for retirement, and that 65 percent were anxious about having enough money to retire.

Seventy-one percent of voters support the proposed state program, which would be administered by a seven-member board made up of members of the governor's administration and appointments made by the governor, Senate president and Assembly speaker. No state funds would be used for the program, and the state would not guarantee the investments.

"The survey shows a tremendous amount of anxiety among a growing number of workers concerned about their retirement security,” Sweeney said in a statement. “Retirement security shouldn’t just be for the wealthy. Everyone should be allowed to live with dignity after their working days are over.”

Lawmakers from both parties have signed on as co-sponsors of the measure, and the AARP survey also shows bipartisan support among voters, with 85 percent of Democrats supporting the idea and 79 percent of Republicans.

The poll results were based on telephone surveys of 1,000 New Jersey voters between March 19 and April 4. It has a margin of error of plus or minus 3.2 percent.

"Democrats and Republicans, liberals and conservatives, independents and young and old alike support this bill. That shows this is an idea and issue that transcends partisan politics, and that this concept is something everyone should support," Prieto said in a statement.

Sarah Gill, a senior legislative representative with AARP, said the advocacy group was "elated" by the survey results and the response from state leaders.

Gill cited findings from the National Institute on Retirement Security, which found the median retirement account balance in the United States is just $3,000 for all working-age households when including families with no retirement savings. She also noted that 86 percent of workers with access to retirement accounts take advantage of them.

"People want to be self-reliant. They just don't have access," Gill said.

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